Ontario woman says using 'cash for houses' company was costly mistake - eviltoast

Laurie Thompson admits she needed to sell her townhouse in Smithville, Ont., fast.

The pandemic had done a number on her finances — the bar where she worked had shut down, twice — and rising interest rates meant her monthly mortgage payments of $2,000 were going to almost double last January. Thompson was facing foreclosure.

“I was desperate,” she told Go Public.

Thompson had seen street signs and posters in her neighbourhood — companies offering to pay quick cash for houses. She’d even received what appeared to be a hand-written flyer in the mail, advertising a hassle-free cash sale — no renovating, open houses, or Realtor commissions.

She hit the internet and found a company with positive reviews and attractive promises called Honest Home Buyers Incorporated (HHBI), based in nearby Hamilton.

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    1 year ago

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    The pandemic had done a number on her finances — the bar where she worked had shut down, twice — and rising interest rates meant her monthly mortgage payments of $2,000 were going to almost double last January.

    She hit the internet and found a company with positive reviews and attractive promises called Honest Home Buyers Incorporated (HHBI), based in nearby Hamilton.

    The website promised other advantages, too  — “more cash” in a seller’s pocket, a quick closing date, no Realtor fees and it claimed homeowners sometimes get a cheque “the very same day!”

    When HHBI owner Mike Chow arrived at Thompson’s townhouse for a walkthrough last January, she told him her employment had been sporadic, the mortgage lender wanted her debt paid off immediately and that she was struggling emotionally — a few months earlier, her partner had unexpectedly died from a heart attack.

    “It’s clearly preying on people who are desperate and vulnerable,” said housing-market analyst Ben Rabidoux, who dislikes how the contracts lock sellers into terms that cut them out of potential profits.

    Rabidoux, lawyers and real estate experts Go Public spoke with all expressed concern that homeowners often don’t understand what a “cash for house” deal actually means — all saying the contracts are often misleading and unethical.


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